Asian stock markets retreat amid swine flu fears

Hong Kong: Asian stock markets retreated on Monday as investors worried the outbreak of swine flu in North America could grow into a worldwide pandemic that deepens the global recession.

Fears over a virus that has already sickened hundreds, and possibly killed more than 100 in Mexico, led investors to buy drug makers and dump airlines like Qantas Airways and Cathay Pacific. Oil prices and the dollar both fell.

In Japan, the Nikkei 225 stock average dropped 30.31 points, or 0.4 per cent, to 8,677.68, while Hong Kong's Hang Seng fell 413.63, or 2.7 per cent, to 14,845.22.

Korea's Kospi lost 13.36 points, or 1 per cent, to 1,340.07. The Shanghai's benchmark dropped 1.2 per cent and Taiwan's stock measure plummeted 3.2 per cent.